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If I have to I will post the source from which i am about to quote, but i'm sure some of you have heard it before.
In an interview with the major 360 talking heads, the 360 was quoted as being affected by "Microsoft's own.....design choice"
a 1 billion dollar program was instated for 360 owners for this problem which according to the heads affects "all systems" sold at that time (something like 18 million units) Heads also refer to continued growth due to four big letters "H-A-L-O" (rofl) and say the games will outweigh the rrod design flaw and that they will not issue a recall, but will wait until the gamers send in their systems.
Sounds horrible I know. IMHO i resent any company that expects me to take a loss (not a financial one) for whatever reason. A lot of my friends have 360, so it sucks when i want to play online (since i sold my system and will not support ms any longer), but i bought a ps3, and have several roommates and know some people, so my online experience is not that much hampered.
I agree with you OP, I bought a ps3 and so will my friends soon. Either way, I no longer contribute to a company that should never have released a console in the first place.
A software company should stick with what it knows best and produce games for other hardware companies. Right now we could have had ps3 with all those games developed alongside a Live!like online and controller with the exact amount of buttons.... like a madcatz controller. There is really no difference between the consoles now, except Blu-ray.
I don't mean to hate on 360. I have had one since launch, until 4 months ago. Sent in my console 4 times. the 6 months i have not been able to play any games and my college-esque bankruptcy means i require something to do in my free time that is low cost. VGames are my outlet, not having them sucks. 360 gave me months of headache, and no stress outlet.

EDIT: I said 6 months because I am a busy person. I work full time and go to school full time. I don't have time to wait around for deliveries, and sometimes don't even have time to scratch my butt let alone bring a package to the post office. When it died the third time I went without for about 3 weeks before i sent it in. Instead I played DS. Even if i had sent them in without delay, 2-3 months is an eternity.